Bitcoin ETFs see $1 billion revenue despite market FUUD

Bitcoin exchange-traded funds (ETFs) have accumulated more than $1 billion in BTC in the past three trading days, indicating strong investor interest. This incredible cash flow coincides with Bitcoin's price hitting $66,000 despite ongoing market volatility.

This strong participation from institutional and retail investors reflects bullishness in the market.

Bitcoin ETFs, Crypto Whales Collect

According to Farside Investors, spot Bitcoin ETFs experienced a huge influx of inflows on Tuesday, earning more than $422.5 million—the highest of the month. BlackRock's iShares Bitcoin Trust (IBIT) led these gains with $260.2 million.

Meanwhile, Fidelity's Wise Origin Bitcoin Fund (FBTC) saw nearly $61.1 million in revenue. Surprisingly, there were no outflows from Bitcoin ETFs in the last three trading days.

Read more: How to trade Bitcoin ETF: A step-by-step approach

At the same time, crypto whales were active, accumulating large amounts of BTC. As of July 15, data from CryptoQuant shows that Bitcoin storage addresses have received about 10,800 BTC, roughly $656.64 million.

Moreover, CryptoQuant CEO Ki Young Joo shared insights on the behavior of Bitcoin holders on X (formerly Twitter). In the last 30 days, wallets, mainly with no flow, have accumulated 85,000 BTC. According to Ju, some market participants are panic selling, while others are taking advantage of the opportunity to buy.

Amidst these developments, concerns about Mount Gox resurfaced. The defunct exchange recently moved 91,755 BTC (~$5.8 billion) to new addresses, raising concerns among investors. Not long after, the Kraken appeared on Mt. Gox announced that it will distribute Bitcoin and Bitcoin Cash (BCH) to those affected by the crash.

Despite these fears, experts like Ju believe the market has overestimated the potential disruption from Gox fees.

Since 2023, $224 billion has been sold in Bitcoin, while its value has increased 350 percent. “Even though Matt Gox sold $3 billion in Kraken, that's only 1% of the capital raised in this bull cycle – manageable liquidity,” Ju explained.

Alex Thorne, head of research at Galaxy, also argues that the impact on Bitcoin's sales pressure may be less than expected. His assessment stems from detailed reviews of bankruptcy documents and discussions with creditors.

Read more: Top Crypto Losses: What You Need to Know

Thor believes the repayment terms could encourage lenders to hold on to their assets, given their high capital gains taxes. After prepayment deductions, single borrowers will receive around 65,000 BTC. Even if 10 percent of this is sold, only 6,500 BTC will enter the market – far less than the market fears.